European Sustainability Reporting Standards (ESRS)

On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive updates the rules concerning the social and environmental information that companies are required to report. Companies subject to the CSRD will need to report according to European Sustainability Reporting Standards (ESRS). The Standards were developed by the EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders.

In July 2025, building on feedback from the first wave of CSRD implementation and following a mandate from the European Commission, EFRAG proposed a simplified set of Standards, introducing substantial flexibility, reliefs and phasing-in, as well as reducing mandatory datapoints while retaining the core objectives of the European Green Deal. After a public consultation process, the revised ESRS were finalized and delivered to the European Commission at the end of 2025. 

ESRS take a “double materiality” perspective –  companies are obliged to report both on their impacts on people and the environment, and on how social and environmental issues create financial risks and opportunities for the company.

The ESRS impact materiality requirements are closely aligned with UNEP FI’s own focus on, and approach to, impact management.

 

Interoperability Package

An Interoperability Package has been developed to help leverage PRB implementation and the UNEP FI holistic impact methodology for CSRD/ESRS implementation. Navigate each resource by clicking on the buttons below.